Physical succession is the succession of the company’s stock which is necessary for securing management rights. If the value of the company’s share is high, the burden of donation tax and inheritance tax becomes heavier upon succession, which may hamper smooth succession. In order to succeed physical succession, it is necessary to grasp everything that is likely to become a problem in the future in the present situation and consider the solution. There is human succession and material succession in business succession. Succession of property related to the value of the company is physical succession. By M & A methodology, procedures will be started for M & A contract between companies as the final contract of company sale. Among them, emphasis will be on ensuring the succession of assets from the company to the company without delay. Corporate value to be sold will be valued by net assets that total capital, surplus, stock value. When a company’s stock is succeeded by a business succession, inheritance tax and gift tax will be incurred and tax will be taken, which becomes a big problem of inheritance tax.
Inheritance grounds and M & A reason
For heirs inheritance tax is a liability arising from the fact of inheritance. And it becomes a tough condition of cash collective payment. Because the tax burden of material takeover changes greatly depending on the method and timing, it is necessary to carry out smoothly while conducting consulting by experts. The physical succession by M & A refers to the procedure for taking over the asset value of the company sold at the time of the company sale to the succeeding company. By selling the company, the management rights of the former president will be transferred to the new CEO. In general, it is considered similar to human succession, but handling of the property of the company sold in M & A is very important. Therefore, it is necessary to be smoothly carried out so that the management of the company succeeded can be carried out stably. Procedure of succeeding property will be a difficult task in business succession. Legal administrative procedures for corporate assets will be the main, but by partnering with consulting work you can smoothly move on.